Congressman Jeb Hensarling

Representing the 5th District of Texas

Hensarling Votes No, Issues Dissenting Views on COP Report

Oct 9, 2009
Press Release

WASHINGTON, D.C. — Congressman Jeb Hensarling, the lone Member of Congress on the Congressional Oversight Panel (COP) for the Troubled Asset Relief Program (TARP) and the top Republican on the House Financial Services Subcommittee on Financial Institutions and Consumer Credit voted “no” on the panel’s October Oversight Report: “An Assessment of Foreclosure Mitigation Efforts After Six Months.”  Excerpts of Hensarling’s dissenting views are included below:

“A fair reading of the Panel’s majority report and my dissent leads to one conclusion -- HAMP and the Administration’s other foreclosure mitigation efforts to date have been a failure.  The Administration’s opaque foreclosure mitigation effort has assisted only a small number of homeowners while drawing billions of involuntary taxpayer dollars into a black hole.”

“While the Congressional Budget Office estimates that taxpayers will lose 100 percent of the $50 billion in TARP funds committed to the Administration’s foreclosure relief programs, instead of focusing its attention on taxpayer protection and oversight, the Panel’s majority report implies that the Administration should commit additional taxpayer funds in hopes of helping distressed homeowners – both deserving and undeserving – with a taxpayer subsidized rescue.”

“[T]he best foreclosure mitigation program is a job, and the best assurance of job security is economic growth and the adoption of public policy that encourages and rewards capital formation and entrepreneurial success.  Without a robust macroeconomic recovery the housing market will continue to languish and any policy that forestalls such recovery will by necessity lead to more foreclosures.”

“Regardless of whether one believes foreclosure mitigation can truly work, taxpayers who are struggling to pay their own mortgage should not be forced to bail out their neighbors through such an inefficient and transparency-deficient program.   Both the Administration and the Panel’s majority appear to prioritize good intentions and wishful thinking over taxpayer protection.”

“Taxpayers deserve a better return on their investment than what they are set to receive from AIG, Chrysler, GM and the Administration’s flawed foreclosure mitigation efforts.”